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Roku (ROKU) Suffers a Larger Drop Than the General Market: Key Insights

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In the latest trading session, Roku (ROKU - Free Report) closed at $74.34, marking a -0.73% move from the previous day. This change lagged the S&P 500's daily loss of 0.43%. Elsewhere, the Dow saw a downswing of 0.07%, while the tech-heavy Nasdaq depreciated by 0.9%.

The video streaming company's shares have seen a decrease of 2.8% over the last month, surpassing the Consumer Discretionary sector's loss of 2.88% and falling behind the S&P 500's loss of 1.98%.

Investors will be eagerly watching for the performance of Roku in its upcoming earnings disclosure. In that report, analysts expect Roku to post earnings of -$0.45 per share. This would mark year-over-year growth of 18.18%. Meanwhile, the latest consensus estimate predicts the revenue to be $1.14 billion, indicating a 15.97% increase compared to the same quarter of the previous year.

For the full year, the Zacks Consensus Estimates are projecting earnings of -$1.10 per share and revenue of $4.05 billion, which would represent changes of +78.04% and +16.32%, respectively, from the prior year.

Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Roku. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, there's been no change in the Zacks Consensus EPS estimate. At present, Roku boasts a Zacks Rank of #3 (Hold).

The Broadcast Radio and Television industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 79, which puts it in the top 32% of all 250+ industries.

The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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